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Rating Events: One Theme to Follow in Global Credit Markets in 2020 (PIMCO Blog, 3 min read) By individually rating issuers and their capital structures investors can identify value in credits ahead of rating agency moves and position accordingly. Particularly important to capture rising stars (credits upgraded to investment grade) and avoid fallen angels (those downgraded to junk).
Allocation Views: Taking a Nimble Approach to 2020 (Advisor Perspectives, 5 min read) Franklin Templeton’s multi asset team see risks skewed to the downside this year with lingering concerns over weakness in business investment, spillovers from the manufacturing recession in Germany and disconnect between equity market performance and corporate profits. PMs see fatter tails and a need to be nimble and diversified. [Bearish equities]
Most Tech Companies Aren’t WeWork (Tech Crunch, 4 min read) A delve into 21 US Software-as-a-service-startups (SaaS) shows cash burn and revenue growth + profit margins are two useful metrics to determine whether a company can achieve high growth while maintaining margins. [Bullish tech stocks]